If you buy a commercial property in order to rent it out to tenants, one of the major issues that you will have to consider is finding the most suitable commercial property insurance. Here is a quick guide to the issues surrounding commercial property insurance when you are considering buying an office, shop or warehouse.
Commercial Property Insurance: Level of Cover
The type of cover available and the limits of the cover is one of the first things you will have to consider with your insurance policy when you look for a commercial property for sale. Wimbledon firms that are searching for insurance should look at both building and contents insurance, although the latter will only be relevant if you own anything inside the building such as the carpets and furniture.
Additionally, make sure you find out how much the policy covers you for damage caused by fire, flooding, burst pipes, subsidence and storms, and make sure you also get a policy that covers owners’ liability for peace of mind.
Choose an Insurance Provider with Experience
It is a good idea to only look for insurance for your commercial property from a company that has a lot of experience in this area. The best insurance providers will be able to show their experience and will also be able to help you by providing specific advice for your situation.
One thing that you may be interested in getting cover for is rent guarantee insurance. This is a type of insurance that is not included on all policies, but it provides you with protection should your tenants fail to provide you with the rent that they owe you. This can provide you with more convenience and piece of mind if you rely on that rent as a source of income, and you may even be able to get assistance in evicting tenants who are not paying the rent.
Unoccupied cover insurance is something that you may need to consider if your commercial property will remain occupied for a period of time. Standard insurance does not typically provide cover for this, which may be caused as a result of any renovation work you are carrying out, or simply because you find that you are unable to attract suitable tenants to your property.
Cost of Cover
The cost is usually a large factor in the insurance product that you finally choose, but try not to let it be the deciding factor. The main thing to remember is that you need an insurance policy that provides you with the right level of cover for your own situation. It would be far worse to just find the cheapest policy that you can and then realise too late that you do not have sufficient cover in place.
Find the Right Insurance for Your Commercial Property
When you invest in a commercial property to rent, make sure that you spend a lot of time carefully choosing a suitable insurance policy. Failure to take out a suitable insurance policy with the right level of cover for your needs could cause serious issues in the future if anything goes wrong, so it is better to be safe than sorry.